Microsoft’s missteps can teach us all a lesson

Microsoft Corp. recently announced the release of Windows 8. It’s a major departure from the classic Windows structure and a major gamble. Essentially, it’s a do or die initiative for Microsoft.

But unfortunately, the gamble is necessary because the company’s star is fading. Or more accurately, the company has allowed it to fade.

For decades, Windows PCs were synonymous with computers. All business was conducted on Windows PCs. Any other computer with any other operating system was considered by many to be either a novelty or something for tech geeks. Apple computers were considered to be strictly for creative types and for students. Microsoft became very good at developing software for the business world.

But the technology world started to change. Slowly at first, and then much more quickly, leading to the concept of “digital convergence.” It’s the idea that phone, Internet, email and entertainment all would converge into one single device. Ironically, I first heard of it in a letter published by Microsoft, in which Bill Gates told us it was a concept that was on the horizon.

Instead of embracing real innovation, Microsoft “poked” at digital convergence by simply embedding its Internet browser more deeply into its operating system. Additionally, in an effort to bolster its following, the company worked hard to develop and communicate its “culture.” The problem was that its culture arose from its products, instead of the other way around.

The last strategic misstep is that, in competing with Apple and Google, the company abandoned its core business, applications for business use. Instead, it has bet everything on appealing to the consumer and social interaction world.

Because of these strategic missteps, its future, in all likelihood, rests on the success or failure of Windows 8. My guess is that because it’s not backed by the culture to support the innovation, it will fall flat.

In contrast, Apple now sits on top of the heap. Here’s why.

The convergence of technologies is heavily focused on entertainment, social interaction, and ease of use — all of which are and have been Apple’s strengths. Apple’s headlong charge into embracing the digital convergence that Bill Gates so accurately foretold allowed Apple to be the catalyst for innovation.

Additionally, unlike Microsoft — which built a culture around its products — Apple built its products around its culture. And culture eats strategy for lunch any day of the week. People don’t buy logically, they buy emotionally. Apple built an army of raving fans with its culture, and the results speak for themselves.

Lesson No. 3: Study the trends in your target market and respond proactively. Don’t be as concerned with the competition or alternative markets. Focus on your core market.

If you focus on culture and serving your market’s needs, you’ll avoid having to take the kind of big gamble that Microsoft has been forced to take.

Michael Beck is an executive strategist and specializes in business strategy, executive development and leadership effectiveness. Connect on LinkedIn: www.linkedin.com/in/mjbeck and visit www.michaeljbeck.com.